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Thu Nov 30, 2017 10:12am

Dow cracks 24K record as tax reform & economic optimism abounds
Published November 30, 2017 News

The Dow Jones Industrial Average crossed the 24,000 point waterline on Thursday, a new intraday record high, as the odds of passing tax reform increase.

In addition, the U.S. economy is on the upswing. 3Q GDP rose 3.3% in its second reading on Wednesday, better-than-expected. Earlier in the week, Consumer Confidence hit the highest level in 17-years and New Home sales, rose to the highest level in a decade.

The index last breached a 1,000 point milestone on Oct. 13 when it crossed above 23,000. Wednesday’s rally left the Dow just 59.32 points below the 24,000 milestone and was the key stock index’s 62nd record close in 2017.

Spreading optimism on Thursday was another drop in U.S. jobless claims, and more positive corporate earnings from the likes of Kroger (KR), the second-largest general merchandise retailer behind Walmart (WMT). Also warehouse club Costco (COST) reported a 10% jump in same-store sales for November.

UBS Chairman Axel Weber told FOX Business's Maria Bartiromo that "there will most likely be very soon tax reform, and that will help corporate a lot. We expect tax rates to go down to something like 20%. That could easily mean that we will get another 10% move in the next couple of months on the equity markets."

The S&P 500 and the Russell 2000 also hit record highs on Thursday. As these major indexes climbed to record highs, the Senate was debating the tax bill. Many believe that tax reform will add further upside to the U.S. economy. In mid-November, UBS analyst Keith Parker told FOX Business’s Stuart Varney that tax cuts are not yet baked into the market.

“If we get a 20% corporate tax rate, then companies’ earnings per share could increase by 10%.”

The best performing Dow stocks since the index crossed 23,000 are Nike (NKE), Walmart (WMT), Cisco (CSCO), Intel (INTC), and 3M (MMM).

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